-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CiC4urGZj68qn/pBbZRJVCFzmyNRJAFlN6LMauQw3l35RfltPyN/pUttHMlBnptr npXXtPKVcFvCICy4ggJ8vw== 0000950152-96-004339.txt : 19960828 0000950152-96-004339.hdr.sgml : 19960828 ACCESSION NUMBER: 0000950152-96-004339 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960731 FILED AS OF DATE: 19960827 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIQUID CAPITAL INCOME TRUST CENTRAL INDEX KEY: 0000059744 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 341151595 FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02528 FILM NUMBER: 96620995 BUSINESS ADDRESS: STREET 1: 1228 EUCLID AVE STREET 2: 1100 HALLE BLDG CITY: CLEVELAND STATE: OH ZIP: 44115 BUSINESS PHONE: 2167814440 FORMER COMPANY: FORMER CONFORMED NAME: LIQUID CAPITAL INCOME INC DATE OF NAME CHANGE: 19820407 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARNEGIE GOVERNMENT SECURITIES TRUST CENTRAL INDEX KEY: 0000315991 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 341306766 FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03037 FILM NUMBER: 96620996 BUSINESS ADDRESS: STREET 1: 1100 HALLE BLDG STREET 2: 1228 EUCLID AVE CITY: CLEVELAND STATE: OH ZIP: 44115 BUSINESS PHONE: 2167814440 MAIL ADDRESS: ZIP: 44115 FORMER COMPANY: FORMER CONFORMED NAME: CARNEGIE GOVERNMENT SECURITIES FUND INC DATE OF NAME CHANGE: 19820407 FORMER COMPANY: FORMER CONFORMED NAME: CARNEGIE LIQUID ASSETS INC DATE OF NAME CHANGE: 19801027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARNEGIE TAX FREE INCOME TRUST CENTRAL INDEX KEY: 0000701816 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 341370355 FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03446 FILM NUMBER: 96620997 BUSINESS ADDRESS: STREET 1: 1228 EUCLID AVE STREET 2: 1100 HALLE BLDG CITY: CLEVELAND STATE: OH ZIP: 44115 BUSINESS PHONE: 2167814440 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARNEGIE TAX EXEMPT INCOME TRUST CENTRAL INDEX KEY: 0000785973 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04538 FILM NUMBER: 96620998 BUSINESS ADDRESS: STREET 1: 1228 EUCLID AVE STREET 2: 1100 HALLE BLDG CITY: CLEVELAND STATE: OH ZIP: 44115 BUSINESS PHONE: 2167814440 N-30D 1 CARNEGIE CAPITAL MANAGEMENT FUNDS 1 CARNEGIE CAPITAL MANAGEMENT COMPANY THE CARNEGIE FUNDS GROUP 1228 Euclid Avenue, Cleveland, Ohio 44115 Phone: (216) 781-4440 call toll free (800) 321-2322 - -------------------------------------------------------------------------------- CARNEGIE Liquid Capital Income Trust is a money market fund with dividends compounded daily. CARNEGIE Government Securities Trust is a money market fund investing in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and repurchase agreements. CARNEGIE Tax Free Income Trust provides income free from federal income taxation-- while offering all the advantages of a money market fund. CARNEGIE Tax Exempt Income Trust Ohio General Municipal Fund provides a high level of current income exempt from federal and Ohio state income taxes. This report was prepared for shareholders of the Trust. It is not authorized for distribution to others unless it is accompanied or preceded by a current combined prospectus. For more complete information on other Carnegie funds, including sales charges and expenses, see the appropriate sections of the combined prospectus, which may be obtained from your broker. Read the prospectus carefully before you invest or send money. [CCMC LOGO] CARNEGIE CAPITAL MANAGEMENT COMPANY CARNEGIE FUNDS GROUP -- Liquid Capital Income Trust -- Carnegie Government Securities Trust -- Carnegie Tax Free Income Trust -- Carnegie Tax Exempt Income Trust -- Ohio General Municipal Fund - ------------------------------------------------------------------- Annual Reports July 31, 1996 - ------------------------------------------------------------------- [CCMC LOGO] CARNEGIE CAPITAL MANAGEMENT COMPANY 1100 The Halle Building 1228 Euclid Avenue Cleveland, Ohio 44115-1831 2 ANNUAL MESSAGE FROM THE PRESIDENT: August 16, 1996 Dear Fellow Shareholders: 1996 to date has once again provided many thrills to investors in both the fixed income area as well as equity markets because of increasing volatility. Interest rates so far have had almost a 50 basis point range. If one were to examine the material from less than 30 years ago one would find that the overall yield movement in an entire year was many times less then what we have seen on the year-to-date basis so far for 1996. With the economy apparently entering a slowing phase, and inflation showing little upward movement, we would hope that the Federal Reserve would maintain a "steady as you go" policy and refrain from further tightening. We believe that with overall deficit levels coming down and solid growth apparently with us for a while longer, we may be in "the best of all possible worlds." We are pleased that once again you have chosen to remain with the Carnegie Funds Group and to invest in our philosophy of quality investments. We have maintained our high quality portfolio standards even though at times, Shareholders might have benefited with higher yields from lower quality standards. Thank you for your continued support as Shareholders of the Carnegie Funds Group. Sincerely, /s/ George R. Mateyo ---------------------- George R. Mateyo President INDEPENDENT AUDITORS' REPORT KPMG Peat Marwick LLP To the Board of Trustees and Shareholders Liquid Capital Income Trust, Carnegie Government Securities Trust, Carnegie Tax Free Income Trust and Carnegie Tax Exempt Income Trust We have audited the accompanying statements of net assets of Liquid Capital Income Trust, Carnegie Government Securities Trust, Carnegie Tax Free Income Trust and Carnegie Tax Exempt Income Trust (comprising the Ohio General Municipal Fund), as of July 31, 1996, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 31, 1996, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and the financial highlights referred to above present fairly, in all material respects, the financial position of Liquid Capital Income Trust, Carnegie Government Securities Trust, Carnegie Tax Free Income Trust and Carnegie Tax Exempt Income Trust, as of July 31, 1996, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with generally accepted accounting principles. August 16, 1996 /s/ KPMG Peat Marwick LLP Cleveland, Ohio 1 3 LIQUID CAPITAL INCOME TRUST -- FINANCIAL HIGHLIGHTS Data for each share outstanding throughout the period
YEAR ENDED JULY 31, ------------------------------------------------------------------------------------ 1996 1995 1994 1993 1992 ------------ ------------ ------------ -------------- -------------- Net asset value, beginning of period........................... $1.00 $1.00 $1.00 $1.00 $1.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income............ 0.047 0.047 0.026 0.024 0.042 ------------ ------------ ------------ -------------- -------------- Total from Investment Operations..................... 0.047 0.047 0.026 0.024 0.042 LESS DISTRIBUTIONS: Distributions from Net Investment Income......................... (0.047) (0.047) (0.026) (0.024) (0.042) ------------ ------------ ------------ -------------- -------------- Total Distributions.............. (0.047) (0.047) (0.026) (0.024) (0.042) Net Asset Value, End of Period.... $1.00 $1.00 $1.00 $1.00 $1.00 ============ ============ ============ ============== ============== RATIOS/SUPPLEMENTAL INFORMATION Expenses as a percentage of average daily net assets(1).... 0.90% 0.87% 0.88% 0.83% 0.77% Net investment income as a percentage of average daily net assets(1)...................... 4.69% 4.72% 2.62% 2.43% 4.25% Net Assets at end of period....... $205,508,605 $247,385,884 $289,950,268 $335,030,422 $431,773,459 ============ ============ ============ ============== ============== (1) The percentages should not be construed as representative of the yield or expenses related to further investments in the Trust.
CARNEGIE GOVERNMENT SECURITIES TRUST -- FINANCIAL HIGHLIGHTS Data for each share outstanding throughout the period
YEAR ENDED JULY 31, ----------------------------------------------------------------------------- 1996 1995 1994 1993 1992 ----------- ----------- ----------- ------------ ------------ Net asset value, beginning of period.............................. $1.00 $1.00 $1.00 $1.00 $1.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income............... 0.045 0.044 0.024 0.022 0.040 ----------- ----------- ----------- ------------ ------------ Total from Investment Operations.... 0.045 0.044 0.024 0.022 0.040 LESS DISTRIBUTIONS: Distributions from Net Investment Income............................ (0.045) (0.044) (0.024) (0.022) (0.040) ----------- ----------- ----------- ------------ ------------ Total Distributions................. (0.045) (0.044) (0.024) (0.022) (0.040) Net Asset Value, End of Period....... $1.00 $1.00 $1.00 $1.00 $1.00 =========== =========== =========== ============ ============ RATIOS/SUPPLEMENTAL INFORMATION Expenses as a percentage of average daily net assets(1)............... 1.03% 1.06% 0.98% 0.87% 0.79% Net investment income as a percentage of average daily net assets(1)......................... 4.50% 4.38% 2.37% 2.25% 4.05% Net Assets at end of period.......... $12,737,746 $14,424,876 $18,078,719 $25,364,240 $34,687,846 =========== =========== =========== ============ ============ (1) The percentages should not be construed as representative of the yield or expenses related to further investments in the Trust.
2 4 CARNEGIE TAX FREE INCOME TRUST -- FINANCIAL HIGHLIGHTS Data for each share outstanding throughout the period
YEAR ENDED JULY 31, ----------------------------------------------------------------------------- 1996 1995 1994 1993 1992 ----------- ----------- ----------- ------------ ------------ Net asset value, beginning of period.... $1.00 $1.00 $1.00 $1.00 $1.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income.................. 0.029 0.029 0.018 0.019 0.036 ----------- ----------- ----------- ------------ ------------ Total from Investment Operations....... 0.029 0.029 0.018 0.019 0.036 LESS DISTRIBUTIONS: Distributions from Net Investment Income............................... (0.029) (0.029) (0.018) (0.019) (0.036) ----------- ----------- ----------- ------------ ------------ Total Distributions.................... (0.029) (0.029) (0.018) (0.019) (0.036) Net Asset Value, End of Period.......... $1.00 $1.00 $1.00 $1.00 $1.00 =========== =========== =========== ============ ============ RATIOS/SUPPLEMENTAL INFORMATION Expenses as a percentage of average daily net assets(1).................. 0.80% 0.82% 0.77% 0.76% 0.69% Net investment income as a percentage of average daily net assets(1)....... 2.92% 2.86% 1.77% 1.88% 3.58% Net Assets at end of period............. $25,266,098 $27,615,905 $31,640,760 $40,646,525 $56,180,652 (1) The percentages should not be construed as representative of the yield or expenses related to further investments in the Trust.
CARNEGIE TAX EXEMPT INCOME TRUST -- OHIO GENERAL MUNICIPAL FUND FINANCIAL HIGHLIGHTS -- Data for each share outstanding throughout the period
YEAR ENDED JULY 31, ----------------------------------------------------------------------------- 1996 1995 1994 1993 1992 ------------- ----------- ----------- ----------- ----------- Net asset value, beginning of period.... $9.46 $9.50 $9.87 $9.79 $9.26 INCOME FROM INVESTMENT OPERATIONS: Net investment income(2)............... 0.514 0.556 0.549 0.559 0.571 Net realized and unrealized gains/(losses) on securities......... (0.050) (0.040) (0.370) 0.080 0.530 ------------- ----------- ----------- ----------- ----------- Total from investment operations....... 0.464 0.516 0.179 0.639 1.101 LESS DISTRIBUTIONS: Distributions from net investment income............................... (0.514) (0.556) (0.549) (0.559) (0.571) ------------- ----------- ----------- ----------- ----------- Total distributions.................... (0.514) (0.556) (0.549) (0.559) (0.571) Net Asset Value, End of Period.......... $9.41 $9.46 $9.50 $9.87 $9.79 ============= =========== =========== =========== =========== ANNUAL TOTAL RETURN..................... 4.98% 5.50% 1.82% 6.77% 12.32% ============= =========== =========== =========== =========== RATIOS/SUPPLEMENTAL INFORMATION Net assets at end of period............ $11,655,988 $11,448,521 $12,574,835 $18,669,199 $28,011,143 Expenses as a percentage of average daily net assets(1)(2)............... 0.88% 0.97% 0.93% 0.81% 0.76% Net investment income as a percentage of average daily net assets(1)....... 5.41% 5.95% 5.68% 5.81% 6.10% Portfolio Turnover rate................ 23.45% 8.77% 10.04% 4.98% 11.40% (1) The percentages should not be construed as representative of the yield or expenses related to further investments in the Fund. (2) During the periods indicated, the Fund did not make payments or made partial payments under their Distribution Expenses Plan and CCMC waived management fees. Net investment income for the Ohio General Municipal Fund would have been $.483, $.528, $.520, $.530, $.543 and $.545 for the years ended July 31, 1996, 1995, 1994, 1993 and 1992, respectively; had such Distribution Expense Plan payments been made and had such fees not been waived. Expenses as a percentage of average net assets would have been 1.18%, 1.27%, 1.23%, 1.11% and 1.06% for the same periods, respectively.
3 5 LIQUID CAPITAL INCOME TRUST STATEMENT OF NET ASSETS JULY 31, 1996
PRINCIPAL MATURITY DATE VALUE AMOUNT (1996) (NOTE A) - ------------ --------------- -------------- CERTIFICATES OF DEPOSIT -- .1% $ 143,636 Mellon Bank, 5.25%................................................. 1/2/97 $ 143,636 -------------- TOTAL CERTIFICATES OF DEPOSIT (Cost $143,636)...................... 143,636 -------------- COMMERCIAL PAPER -- 46.9% 10,000,000 Dean Witter Discover Company, 5.35%................................ 8/16 9,977,708 10,000,000 Ford Motor Credit Company, 5.31%................................... 9/3 9,951,325 4,000,000 Industrial Funding Corp., 5.50%.................................... 9/27 3,965,167 6,000,000 Industrial Funding Corp., 5.55%.................................... 10/28 5,918,600 6,720,000 International Lease Finance Corp., 5.35%........................... 8/13 6,708,016 5,000,000 JC Penney Funding Corp., 5.35%..................................... 8/19 4,986,625 5,000,000 JC Penney Funding Corp., 5.34%..................................... 8/29 4,979,233 10,000,000 National City Corp., 5.37%......................................... 8/30 9,956,742 10,000,000 Pepsico Inc., 5.28%................................................ 8/23 9,967,733 10,000,000 Philip Morris Company, 5.28%....................................... 8/28 9,960,400 10,000,000 Republic National Bank of New York, 5.35%.......................... 8/20 9,971,764 10,000,000 Walt Disney Company, 5.26%......................................... 8/29 9,959,089 -------------- TOTAL COMMERCIAL PAPER (Cost $96,302,402).......................... 96,302,402 -------------- LETTERS OF CREDIT -- 4.8% 10,000,000 First National Bank of Chicago, Commonwealth Fuel, 5.32%........... 9/10 9,940,889 -------------- TOTAL LETTERS OF CREDIT (Cost $9,940,889).......................... 9,940,889 -------------- BANKER ACCEPTANCES -- 4.8% 5,000,000 Key Corp., 5.44%................................................... 9/17 4,964,489 5,000,000 Key Corp., 5.36%................................................... 9/18 4,964,266 -------------- TOTAL BANKER ACCEPTANCES (Cost $9,928,755)......................... 9,928,755 -------------- TAXABLE MUNICIPALS -- 4.9% 10,045,000 Metropolitan Washington D.C. Airport Authority, 5.43%.............. 8/15 10,079,848 -------------- TOTAL TAXABLE MUNICIPALS (Cost $10,079,848)........................ 10,079,848 -------------- U.S. GOVERNMENT AGENCIES -- 19.4% 10,000,000 Federal Home Mortgage Corp., 5.30%................................. 9/12 9,938,167 10,000,000 Federal National Mortgage Association, 5.30%....................... 8/8 9,989,694 10,000,000 Federal National Mortgage Association, 5.22%....................... 8/23 9,968,100 10,000,000 Federal National Mortgage Association, 5.22%....................... 8/30 9,957,950 -------------- TOTAL U.S. GOVERNMENT AGENCIES (Cost $39,853,911)................................................. 39,853,911 -------------- REPURCHASE AGREEMENTS -- 19.1% 42,420,000 Merrill Lynch Government Securities, Inc., 5.50%; Collateralized by $42,420,000 U.S. Treasury Bills, 5.45% due 7/24/97 (repurchase proceeds $39,306,004).............................................. 8/1 39,300,000 -------------- TOTAL INVESTMENTS -- 100% (COST $205,549,441)...................... 205,549,441 OTHER ASSETS LESS LIABILITIES...................................... (40,836) -------------- NET ASSETS -- 100.0% -- equivalent to $1.00 per share for 205,508,605 outstanding Capital Shares in the Trust, $.10 par value (unlimited number of shares authorized) -- Note E............................. $ 205,508,605 ============= + At July 31, 1996, investments in commercial paper are diversified among several industries with no significant concentration. At the time of purchase, all commercial paper investments are rated A-1 by S&P or P-1 by Moody's Rating Services.
See Notes to Financial Statements. 4 6 LIQUID CAPITAL INCOME TRUST STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 1996 INTEREST INCOME............................................. $12,768,718 EXPENSES -- NOTE B Management fees........................................... $1,144,869 Custodian and transfer agent fees......................... 612,423 Printing.................................................. 86,969 Postage................................................... 74,868 Registration and filing fees.............................. 35,775 Insurance expense......................................... 31,393 Trustees' fees............................................ 24,000 Professional fees......................................... 23,406 Miscellaneous............................................. 23,724 2,057,427 ---------- ----------- INVESTMENT INCOME -- NET.................................... $10,711,291 ===========
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31, ----------------------------- 1996 1995 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS -- NOTE E Operations: Investment income -- net................................ $ 10,711,291 $ 12,656,143 Distributions to shareholders from net investment income....................................... (10,711,291) (12,656,143) Capital share transactions -- net......................... (41,877,279) (42,564,384) ------------ ------------ Total decrease in net assets....................... (41,877,279) (42,564,384) NET ASSETS Beginning of year......................................... 247,385,884 289,950,268 ------------ ------------ End of year............................................... $205,508,605 $247,385,884 ============ ============
See Notes to Financial Statements. 5 7 CARNEGIE GOVERNMENT SECURITIES TRUST STATEMENT OF NET ASSETS JULY 31, 1996
PRINCIPAL MATURITY VALUE AMOUNT DATE (1996) (NOTE A) - ---------- ------------ ----------- U.S. GOVERNMENT AGENCIES -- 86.0% $2,000,000 Federal Home Loan Bank, 5.20%................... 8/6 $ 1,998,556 2,000,000 Federal Home Loan Mortgage Corp., 5.22%......... 8/15 1,995,940 2,000,000 Federal Home Loan Mortgage Corp., 5.30%......... 9/12 1,987,633 1,000,000 Federal National Mortgage Association, 5.20%.... 8/12 998,411 2,000,000 Federal National Mortgage Association, 5.22%.... 8/23 1,993,620 2,000,000 Federal National Mortgage Association, 5.26%.... 9/24 1,984,220 ----------- TOTAL U.S. GOVERNMENT AGENCIES (Cost $10,958,380)............................ 10,958,380 ----------- REPURCHASE AGREEMENTS -- 14.1% 2,015,000 Merrill Lynch Government Securities, Inc., 5.50%; Collateralized by $2,015,000 Federal Home Loan Bank, 5.40% due 3/25/1997 (repurchase proceeds $1,794,274).............. 8/1 1,794,000 ----------- TOTAL INVESTMENTS -- 100.1% (Cost $12,738,162)............................ 12,752,380 OTHER ASSETS LESS LIABILITIES (.1%)............. (14,634) ----------- NET ASSETS -- 100.0% -- equivalent to $1.00 per share for 12,737,746 outstanding Capital Shares in the Trust, $.10 par value (unlimited number of shares authorized) -- Note E........ $12,737,746 ============
See Notes to Financial Statements. 6 8 CARNEGIE GOVERNMENT SECURITIES TRUST STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 1996 INTEREST INCOME............................................. $783,561 EXPENSES -- NOTE B Management fees........................................... $ 71,083 Custodian and transfer agent fees......................... 28,046 Professional fees......................................... 13,073 Registration and filing fees.............................. 11,592 Trustees' fees............................................ 8,000 Printing.................................................. 5,988 Insurance expense......................................... 2,310 Postage................................................... 2,020 Miscellaneous............................................. 3,477 145,589 -------- -------- INVESTMENT INCOME -- NET.................................... $637,972 ========
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31, --------------------------- 1996 1995 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS -- NOTE E Operations: Investment income -- net................................ $ 637,972 $ 686,538 Distributions to shareholders from net investment income....................................... (637,972) (686,538) Capital share transactions -- net......................... (1,687,130) (3,653,843) ----------- ----------- Total decrease in net assets....................... (1,687,130) (3,653,843) NET ASSETS Beginning of year......................................... 14,424,876 18,078,719 ----------- ----------- End of year............................................... $12,737,746 $14,424,876 =========== ===========
See Notes to Financial Statements. 7 9 CARNEGIE TAX FREE INCOME TRUST STATEMENT OF NET ASSETS+ JULY 31, 1996
PRINCIPAL VALUE AMOUNT RATING* (NOTE A) - ---------- -------- ---------------- MUNICIPAL SECURITIES -- 99.4% ALABAMA -- 11.5% $ 200,000 Alabama Special Care Facility Variable Rate Demand Revenue Bonds 3.60%, 8/7/96................................................................. Aaa $ 200,000 1,200,000 Birmingham Baptist Medical Center Variable Rate Demand Revenue Bonds 4.05%, 8/7/96.......................................................... A1 1,200,000 1,200,000 Columbia Alabama Variable Rate Demand Industrial Development Revenue Bonds 3.60%, 8/1/96............................................ A2 1,200,000 300,000 North Alabama Pollution Control Variable Rate Demand Revenue Bonds 3.65%, 8/1/96.......................................................... Aa3 300,000 ARIZONA -- 5.9% 1,000,000 Arizona Health Facilities Authority Variable Rate Demand Revenue Bonds 3.65%, 8/7/96.......................................................... Aaa 1,000,000 500,000 Pima County Variable Rate Demand Industrial Development Revenue Bonds 3.55%, 8/7/96.......................................................... NR 500,000 CALIFORNIA -- 4.0% 1,000,000 Los Angeles Regional Airports Improvement Variable Rate Demand Revenue Bonds 3.65%, 8/1/96.................................................... Aa2 1,000,000 DELAWARE -- 2.7% 700,000 Wilmington Hospital Franciscan Health System Variable Rate Demand Revenue Bonds 3.65%, 8/1/96............................................ Aa2 700,000 GEORGIA -- 4.7% 1,200,000 Burke County Pollution Control Variable Rate Demand Revenue Bonds 3.60%, 8/1/96.......................................................... A1 1,200,000 HAWAII -- 4.0% 1,000,000.. Hawaii Housing Finance Variable Rate Demand Revenue Bonds 3.85%, 8/7/96................................................................. A1 1,000,000 ILLINOIS -- 7.5% 900,000 Illinois Health Facilities Variable Rate Demand Revenue Bonds 3.65%, 8/7/96................................................................. Aaa 900,000 1,000,000 Saint Charles Variable Rate Demand Industrial Development Revenue Bonds 3.65%, 8/7/96.......................................................... AA 1,000,000 KENTUCKY -- 4.7% 1,200,000 Appalachian Regional Health Care Development Finance Authority Variable Rate Demand Revenue Bonds 3.65%, 8/7/96................................ Aa2 1,200,000 MARYLAND -- 4.0% 1,000,000 Montgomery County Housing Variable Rate Demand Revenue Bonds 3.75%, 8/7/96................................................................. Aa 1,000,000 MASSACHUSETTS -- 4.0% 1,000,000 Massachusetts State Health and Educational Facility Authority Variable Rate Demand Revenue Bonds 3.60%, 8/7/96................................ Aa3 1,000,000 MICHIGAN -- 4.7% 1,200,000 Michigan State Hospital Finance Authority Variable Rate Demand Revenue Bonds 3.65%, 8/7/96.................................................... A1 1,200,000 NEW YORK -- 3.6% 900,000 New York State Medical Care Facilities Variable Rate Demand Revenue Bonds 3.45%, 8/7/96.................................................... Aa3 900,000 OHIO -- 8.8% 1,000,000 Hamilton County Health System Variable Rate Demand Revenue Bonds 3.70%, 8/1/96................................................................. A1 1,000,000 200,000 Muskingum County Variable Rate Demand Industrial Development Revenue Bonds 3.65%, 8/1/96.................................................... Aa2 200,000 1,000,000 Ohio State Environmental Improvement Variable Rate Demand Revenue Bonds 3.65%, 8/1/96.......................................................... A1 1,000,000
See Notes to Financial Statements. 8 10 CARNEGIE TAX FREE INCOME TRUST STATEMENT OF NET ASSETS+ -- CONTINUED JULY 31, 1996
PRINCIPAL VALUE AMOUNT RATING* (NOTE A) - ---------- -------- ---------------- OREGON -- 4.0% $ 400,000 Port of Portland Pollution Control Variable Rate Demand Revenue Bonds 3.65%, 8/1/96.......................................................... Aa3 $ 400,000 600,000 Umatilla County Hospital Facilities Variable Rate Demand Revenue Bonds 3.65%, 8/1/96.......................................................... Aa2 600,000 PENNSYLVANIA -- 3.6% 900,000 Delaware County Variable Rate Industrial Development Revenue Bonds 3.55%, 8/1/96.......................................................... Aaa 900,000 SOUTH CAROLINA -- 4.0% 1,000,000 York County Pollution Control Tax Free Commercial Paper 3.45%, 10/1/96................................................................ Aa2 1,000,000 TENNESSEE -- 2.7% 400,000 Metropolitan Nashville Airport Authority Special Facilities Variable Rate Demand Revenue Bonds 3.65%, 8/1/96................................ AA+ 400,000 300,000 Sullivan County Variable Rate Industrial Development Revenue Bonds 3.65%, 8/1/96.......................................................... AAA 300,000 TEXAS -- 5.5% 900,000 Lone Star Airport Improvement Authority Variable Rate Demand Revenue Bonds 3.65%, 8/1/96.................................................... VMIG1 900,000 500,000 Lower Neches Valley Authority Variable Rate Demand Revenue Bonds 3.60%, 8/7/96................................................................. Aa2 500,000 VIRGINIA -- 1.6% 400,000 Fairfax County Industrial Development Authority Variable Rate Demand Revenue Bonds 3.75%, 8/7/96............................................ Aa 400,000 WISCONSIN -- 7.9% 1,000,000 Racine University School District Tax and Revenue Anticipation Notes 4.50%, 8/23/96......................................................... Sp1+ 1,004,550 1,000,000 Wisconsin Health Facilities Variable Rate Demand Revenue Bonds 3.60%, 8/7/96................................................................. Aaa 1,000,000 ---------------- TOTAL INVESTMENTS -- 99.4% (Cost $25,104,550).......................... 25,104,550 OTHER ASSETS LESS LIABILITIES -- .6%................................... 161,548 ---------------- NET ASSETS -- 100% -- equivalent to $1.00 per share for 25,266,098 outstanding Capital Shares in the Trust, $.10 par value (unlimited number of shares authorized) -- Note E................................. $ 25,266,098 ================= + Variable Rate Demand Notes (V.R.D.N.) are instruments whose interest rates change on a specified date (such as coupon date or interest payment date). These instruments are payable on demand and are secured by one or more of the following: letters of credit or other credit support agreements from either banks, corporate obligors, insurance companies and/or the taxing authority of the municipality. * All ratings are stated as of July 31, 1996 by Moody's Investor Services, Inc. or Standard and Poor's. The unrated municipal obligations are considered by the Trust's investment adviser, Carnegie Capital Management Company, to have characteristics and quality comparable to the rated municipal obligations purchased by the Fund, and are in accordance with policies established by the Board of Trustees.
See Notes to Financial Statements. 9 11 CARNEGIE TAX FREE INCOME TRUST STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 1996 INTEREST INCOME.................................................. $915,872 EXPENSES -- NOTE B Management fees................................................ $123,510 Custodian and transfer agent fees.............................. 23,616 Registration and filing fees................................... 13,724 Professional fees.............................................. 12,960 Trustees' fees................................................. 8,000 Printing....................................................... 5,313 Insurance expense.............................................. 4,350 Postage........................................................ 2,626 Miscellaneous.................................................. 3,252 197,351 -------- -------- INVESTMENT INCOME -- NET......................................... $718,521 ========
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31, --------------------------- 1996 1995 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS -- NOTE E Operations: Investment income -- net..................................... $ 718,521 $ 810,380 Distributions to shareholders from net investment income............................................ (718,521) (810,380) Capital share transactions -- net.............................. (2,349,807) (4,024,855) ----------- ----------- Total decrease in net assets............................ (2,349,807) (4,024,855) NET ASSETS Beginning of year.............................................. 27,615,905 31,640,760 ----------- ----------- End of year.................................................... $25,266,098 $27,615,905 =========== ===========
See Notes to Financial Statements. 10 12 CARNEGIE TAX EXEMPT INCOME TRUST OHIO GENERAL MUNICIPAL FUND STATEMENT OF NET ASSETS -- JULY 31, 1996
PRINCIPAL VALUE AMOUNT RATING* (NOTE A) - --------- ---------- ----------- MUNICIPAL BONDS -- 97.3% $ 750,000 Columbus Citation Housing Corp. Revenue Bonds 7.63%, 1/1/2022........................ AA $ 859,622 250,000 Cuyahoga Cnty. Hosp.-Metro Health Sys. Revenue Bonds 6.90%, 2/15/2007................ NR 261,807 250,000 Cuyahoga Cnty. Jail Fac. General Obligation Bonds 7.00%, 10/1/2013................... AAA 281,245 750,000 Cuyahoga Cnty. Meridia Hlth. Care Sys. Revenue Bonds 7.00%, 8/15/2006................ A 804,826 500,000 Dublin Ohio City Schl Dist. General Obligation Bonds 6.20%, 12/1/2019................ AAA 517,359 800,000 Franklin Cnty. Hosp. Revenue Refunding & Improvement Riverside 7.60%, 5/15/2020...... AAA 897,753 600,000 Franklin Cnty. Riverside Hosp. Revenue Bonds 7.25%, 5/15/2020........................ AAA 639,647 800,000 Hamilton Cnty. General Obligation Bonds 5.10%, 12/1/2013 - 12/1/2014................. AA 757,323 850,000 Hamilton Cnty. Bethesda Hosp. Revenue Bonds 7.00%, 1/1/2009.......................... A 870,418 450,000 Mahoning Cnty. Sanitary Sewer Sys. Revenue Bonds 7.50%, 2/1/2009..................... AAA 490,556 500,000 Mahoning Cnty. Western Reserve Care Sys. Revenue Bonds 5.38%, 10/15/2015............. AAA 475,803 500,000 Ohio Capital Corp. Housing Revenue Bonds 7.60%, 11/1/2023............................ AAA 538,176 461,000 Ohio Housing Finance Agency Revenue Bonds 7.05% -7.40%, 9/1/2015 - 9/1/2016.......... AAA 478,428 120,000 Ohio State Higher Ed. Oberlin College Revenue Bonds 7.10%, 10/1/2012................. NR 131,936 500,000 Ohio State Water Development Authority Revenue Bonds 5.50%, 12/1/2018................ AAA 484,958 250,000 Parma Community Hospital Revenue Bonds 7.13%, 11/15/2013............................. AAA 266,161 500,000 Richland Cnty. General Obligation Bonds 5.40%, 12/1/2015............................. AAA 480,257 500,000 Rural Lorain Water Authority Revenue Bonds 5.45% 10/1/2018........................... AAA 479,482 500,000 Stark Cnty. General Obligation Bonds 5.70%, 11/15/2017............................... AAA 498,729 145,000 University Heights B General Obligation Bonds 6.20%, 12/1/2014....................... NR 149,512 500,000 University of Toledo General Receipts Revenue Bonds 5.90%, 6/1/2020.................. AAA 502,565 500,000 Washington Water Sys. Revenue Bonds 5.38%, 12/1/2019................................. AAA 470,827 ----------- TOTAL INVESTMENTS -- 97.3% (COST $10,980,363)........................................ 11,337,390 OTHER ASSETS LESS LIABILITIES -- 2.7%................................................ 318,598 ----------- NET ASSETS -- 100%................................................................... $11,655,988 ============ NET ASSET VALUE PER SHARE............................................................ $ 9.41 ============ SHARES OUTSTANDING (unlimited number of shares authorized; $.10 par value) -- NOTE C............................................................................... 1,238,451 ============ MAXIMUM OFFERING PRICE PER SHARE (net asset value plus 4.71% of net amount invested or 4.5% of the offering price)....................................................... $ 9.85 ============ NET ASSETS, AS OF JULY 31, 1996, ARE COMPRISED OF THE FOLLOWING: Aggregate paid in capital............................................................ $11,686,791 Accumulated undistributed net realized losses........................................ (387,830) Unrealized appreciation of investments -- net........................................ 357,027 ----------- $11,655,988 ============ * All ratings are stated as of July 31, 1996 by Moody's Investor Services, Inc. or Standard and Poor's. The unrated municipal obligations are considered by the Trust's investment adviser, Carnegie Capital Management Company, to have characteristics and quality comparable to the rated municipal obligations purchased by the Fund, and are in accordance with policies established by the Board of Trustees.
See Notes to Financial Statements. 11 13 CARNEGIE TAX EXEMPT INCOME TRUST OHIO GENERAL MUNICIPAL FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 1996 INTEREST INCOME.............................................................................. $ 739,910 ------------ EXPENSES -- NOTE B Management fees.............................................................................. 59,047 Pricing service fees......................................................................... 10,199 Custodian and transfer agent fees............................................................ 8,646 Trustees' fees............................................................................... 8,000 Professional fees............................................................................ 6,505 Printing..................................................................................... 3,970 Registration and filing fees................................................................. 2,109 Insurance expense............................................................................ 1,976 Miscellaneous................................................................................ 2,690 ------------ Total expenses........................................................................... 103,142 ------------ NET INVESTMENT INCOME........................................................................ 636,768 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain on investments................................................................. 13,258 Change in unrealized appreciation of investments............................................. (96,894) ------------ Net loss on investments...................................................................... (83,636) ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS................................................... $ 553,132 ===========
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31, ---------------------------- 1996 1995 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS Net investment income........................................................ 636,768 678,256 Realized gain on investments -- net.......................................... 13,258 47,871 Change in unrealized appreciation of investments -- net...................... (96,894) (127,808) ----------- ----------- Net increase in net assets from operations................................... 553,132 598,319 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME -- NOTE A........... (636,768) (678,256) CAPITAL SHARE TRANSACTIONS -- NOTE C Shares sold.................................................................. 2,185,962 702,342 Shares issued on reinvestment of distributions............................... 428,112 456,507 ----------- ----------- 2,614,074 1,158,849 Shares redeemed.............................................................. (2,322,971) (2,205,226) ----------- ----------- Net increase/(decrease) from capital shares transactions..................... 291,103 (1,046,377) ----------- ----------- Total increase/(decrease) in net assets............................. 207,467 (1,126,314) NET ASSETS Beginning of year............................................................ 11,448,521 12,574,835 ----------- ----------- End of year.................................................................. $11,655,988 $11,448,521 =========== ===========
See Notes to Financial Statements. 12 14 CARNEGIE FUNDS GROUP (THE "TRUSTS") NOTES TO FINANCIAL STATEMENTS NOTE A -- ACCOUNTING POLICIES Liquid Capital Income Trust (LCI), Carnegie Government Securities Trust (CGST) and Carnegie Tax Free Income Trust (CTF) (the "Money Funds") are money market funds. The Trusts are open-end, diversified management investment companies registered under the Investment Company Act of 1940, as amended. Carnegie Tax-Exempt Income Trust is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust offers shares of beneficial interest in the Ohio General Municipal Fund ("Ohio General"). The following is a summary of significant accounting policies followed by the Trusts. The policies are in conformity with generally accepted accounting principles. Use of estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates. Security valuations -- Investment securities for LCI, CGST and CTF are valued using the amortized cost method whereby a security is valued at cost adjusted for the amortization of any premiums or discounts over the period until maturity. The cost of portfolio securities is substantially the same for financial reporting and federal income tax purposes. The value of municipal obligations held by Ohio General are furnished by pricing services approved by the Trust's Board of Trustees using methods based on market transactions for comparable securities and other factors which are generally recognized by institutional traders. Short-term portfolio securities are valued using the amortized cost method whereby a security is valued at cost adjusted for the amortization of any premiums or discounts over the period until maturity. Security transactions and related investment income -- Security transactions are accounted for on the trade date (date order to buy or sell is executed). Interest income is determined on the basis of accrued interest and discount earned (including original issue and market discount) and premium amortized. Realized gains and losses, if any, on sales of securities are calculated on the identified cost basis. Repurchase Agreements -- For LCI and CGST, all repurchase agreements are collateralized by United States Government Securities and such collateral is in the possession of the Trusts' custodian. Each Trust evaluates collateral daily. The market value of collateral is noted in the Statement of Net Assets. Unless otherwise noted, the purchase date for all repurchase agreements was July 31, 1996. Federal income taxes -- The Trusts have elected to fulfill the applicable requirements of the Internal Revenue Code relating to regulated investment companies by distributing all income to shareholders and, accordingly, no provision for federal income taxes is required. Distributions paid by Ohio General from net investment income on tax-exempt municipal obligations are not includable by shareholders as gross income for federal income tax purposes because Ohio General has fulfilled certain requirements of the Internal Revenue Code applicable to regulated investment companies which will enable Ohio General to pay exempt-interest distributions. For the year ended July 31, 1996, Ohio General has capital loss carryovers for federal income tax purposes of $387,830. If unused, such amount will expire on July 31, 1999. Securities purchased on a when-issued basis -- Delivery and payment for securities which have been purchased on a when-issued or delayed delivery basis can take place a month or more after the date of the transaction. The securities so purchased are subject to market fluctuation during this period. The Trusts instruct the custodian to segregate assets in a separate account with a market value equal to the amount of its purchase commitment. At July 31, 1996, there were no when-issued securities. Capital share transactions and distributions to shareholders -- The Money Funds' shares are sold in continuous public offerings and are redeemed at their respective net asset values. LCI and CGST declare and pay dividends each business day to distribute their net investment income and realized net short-term capital gains, if any. CTF declares a dividend each business day and pays the dividend monthly. For LCI and CGST, all such dividends are automatically reinvested in additional shares of the applicable Trust at their respective net asset values. For CTF, the shareholders may elect a cash distribution of dividends or elect automatic reinvestment in additional shares of the Trust at its net asset value. Ohio General shares are sold in a continuous public offering and are redeemed at the net asset value. The Fund declares distributions each business day and pays the distributions monthly. Shareholders may elect to reinvest such distributions at the net asset value on the payment date or receive the distributions in cash. Ohio General concentrates its investments in Ohio, and therefore may have more credit risk related to the economic conditions in the state of Ohio than a portfolio with broader geographical diversification. 13 15 NOTES TO FINANCIAL STATEMENTS -- CONTINUED NOTE B -- MANAGEMENT FEE AND DISTRIBUTION FEE Pursuant to the investment advisory contract (the "Advisory Contract") in effect between the Trusts and Carnegie Capital Management Company ("CCMC"), CCMC is responsible for the management of the investments for the Trusts, and the overall management of the business affairs, subject to the general supervision and control of the Board of Trustees. CCMC performs and bears the cost of research, statistical analysis and continuous supervision of the investment portfolios of the Trusts and furnishes office facilities and certain clerical and administrative services. In addition, CCMC, together with Carnegie Fund Distributors, Inc. ("CFD"), the Fund's principal underwriter and a wholly-owned subsidiary of CCMC, bears promotional expenses, including costs of printing and distributing prospectuses utilized for promotional purposes, other than those waived under the Distribution Expense Plan described below. LCI compensates CCMC with a management fee at an annual rate of .50% of LCI's average daily net assets up to $700 million, .45% of the next $500 million, .40% of the next $800 million and .35% of the average daily net assets exceeding $2.0 billion. For the year ended July 31, 1996, LCI had $89,247 payable to CCMC for management fees, and for the year then ended CCMC earned management fees of $1,144,869. CGST compensates CCMC with a management fee at an annual rate of .50% of CGST's average daily net assets up to $100 million, .40% of the next $200 million and .35% of average daily net assets in excess of $300 million. For the year ended July 31, 1996, CGST had $5,434 payable to CCMC for management fees, and for the year then ended CCMC earned management fees of $71,083. CTF compensates CCMC with a management fee at an annual rate of .50% of CTF's average daily net assets. For the year ended July 31, 1996, CTF had $10,810 payable to CCMC for management fees, and for the year then ended CCMC earned management fees of $123,510. Ohio General compensates CCMC with a management fee at an annual rate of .50% of Ohio General's average daily net assets. For the year ended July 31, 1996, Ohio General had $5,230 payable to CCMC for management fees, and for the year then ended CCMC earned management fees of $59,047. In addition, in the event that the aggregate operating expenses of the Money Funds and Ohio General (excluding certain expenses and, where permitted by applicable state securities regulations, expenses incurred as part of the Distribution Expense Plan described below) exceed any expense limitations imposed by applicable state securities regulations, CCMC will reimburse 100% of such excess expenses. There were no excess expenses for the year ended July 31, 1996. The Trustees have adopted a Distribution Expense Plan pursuant to Rule 12b-1 under the 1940 Act with respect to Ohio General. Pursuant to the Distribution Expense Plan, Ohio General will pay to CFD quarterly a Distribution Fee at the annual rate of .30 of 1% of the average daily net assets. If actual Distribution Expenses incurred for the year are less than the yearly Distribution Fee, as calculated above, the Ohio General will pay an amount equal to such Distribution Expenses. CFD is required to use .20 of 1% of such fee to make continuing payments to authorized securities dealers for their continuing distribution and promotional assistance in connection with the sale of the shares of Ohio General. The remaining portion of the Distribution Fee must be utilized by CFD for expenses incurred which are primarily intended to result in the sale of shares including, but not limited to, paying for the preparation, printing and distribution of sales literature and other promotional materials to existing and prospective investors and by directly or indirectly purchasing radio, television, newspaper and other media advertising and conducting sales seminars, sales contests, and other incentives. Distribution fees in the amount of $35,410 for the year ended July 31, 1996 were waived for the Ohio General Municipal Fund. For the year ended July 31, 1996, CFD received sales charges paid by the purchasers of Ohio General's shares of $19,282. Such sales charges are not expenses of Ohio General and hence are not reflected in the accompanying Statements of Operations. CCMC, CFD and the Trusts have certain officers in common. LCI compensates independent trustees with a quarterly fee of $1,500. CGST, CTF and Ohio General each compensate trustees with a quarterly fee of $500. 14 16 NOTES TO FINANCIAL STATEMENTS -- CONTINUED NOTE C -- CAPITAL SHARES Transactions in capital shares were as follows:
YEAR ENDED JULY 31 --------------------------------- 1996 1995 -------------- -------------- LCI Shares sold................................................... 523,164,749 581,045,745 Shares issued on reinvestment of distributions................ 10,711,291 12,656,143 -------------- -------------- 533,876,040 593,701,888 Shares redeemed............................................... (575,753,319) (636,266,272) -------------- -------------- Net decrease in capital shares................................ (41,877,279) (42,564,384) =============== =============== CGST Shares sold................................................... 46,242,801 64,575,987 Shares issued on reinvestment of distributions................ 637,972 686,538 -------------- -------------- 46,880,773 65,262,525 Shares redeemed............................................... (48,567,903) (68,916,368) -------------- -------------- Net decrease in capital shares................................ (1,687,130) (3,653,843) =============== =============== CTF Shares sold................................................... 53,251,073 73,012,254 Shares issued on reinvestment of distributions................ 718,521 810,380 -------------- -------------- 53,969,594 73,822,634 Shares redeemed............................................... (56,319,401) (77,847,489) -------------- -------------- Net decrease in capital shares................................ (2,349,807) (4,024,855) =============== =============== Ohio General Shares sold................................................... 226,209 74,725 Shares issued on reinvestment of distributions from net investment income........................................... 47,504 48,762 -------------- -------------- 273,713 123,487 Shares redeemed................................................. (245,855) (235,935) -------------- -------------- Net increase/(decrease) in capital shares....................... 27,858 (112,448) =============== ===============
NOTE D -- PURCHASES AND SALES OF INVESTMENT SECURITIES -- OHIO GENERAL MUNICIPAL FUND Purchases of investment securities and value of securities maturing or sold excluding short-term securities during the year ended July 31, 1996 amounted to $3,162,115 and $2,682,888, respectively. For Federal income tax purposes, the identified cost of securities owned on July 31, 1996 was $10,980,363. Aggregate unrealized appreciation on the cost basis of investments was $507,830 and aggregate unrealized depreciation was $150,803. Net realized appreciation at July 31, 1996 was $357,027. NOTE E -- NET ASSETS Net Assets, as of July 31, 1996, are comprised of the following:
LCI CGST CTF ------------ ----------- ----------- Capital shares, at par.......................................... $ 20,550,861 $ 1,273,775 $ 2,526,610 Capital shares in excess of par................................. 184,957,744 11,463,971 22,739,488 ------------ ----------- ----------- Net Assets.............................................. $205,508,605 $12,737,746 $25,266,098 ============= ============ ============
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